Apple May Still Profit From TV Business: Analyst
More speculation has surfaced about Apple’s “hobby,” the AppleTV, and how the company might consider creating an actual television set. Andy Hargreaves, senior research analyst at Pacific Crest Securities, and Tavis McCourt, managing director and communications technology analyst at Morgan Keegan, shared their insights.
“The upgrades that are coming this year are more on their traditional Apple TV product, but ultimately a few years down the road, for the TV market to be meaningful to them, they are going to have to get into the TV set-making business,” McCourt told CNBC.
It’s not too late for Apple to enter the TV business, as there’s always money to be made, he reassured.
“People argued before Apple got into the cellphone business that it’s a low-margin business as well,” said McCourt.
Opposing View: A 'Different' Market
In the meantime, Hargreaves said Apple is likely to face many difficulties entering the TV arena.
“The market is a lot different in TV, because you’re reliant on a relatively small group of content providers and they don’t necessarily want to give up any ground to Apple,” he explained.
Scorecard—What They Said:
- Hargreaves' Previous Appearance on CNBC (Jun. 18, 2010)
- McCourt's Previous Appearance on CNBC (Jun. 7, 2010)
Technology Views—Across the Board:
- 'Get Ready' for Tech Outperformance: Strong Buys & Trends
- 'Fast Money' Traders: Will Tech Come Back?
- Why Tech Won't Remain a Laggard
CNBC Data Pages:
Apple Competes With:
Hargreaves does not own shares of AAPL, but his firm makes a market in shares of AAPL.
No immediate information was available for McCourt or his firm.